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BookingAlpha Option Trading Advisory

Thursday, February 1, 2018

March 2018 SPX Unbalanced Elephant

Trade Details:

20 SPX 2615/2625 Credit Put  spreads 0.55 Credit ($1100)
  8 SPX 2940/2950 Credit Call spreads 0.95 Credit ($760)

plus

9 SPY Long 295 Calls @0.37 (-$333)
I didn't add the Long Puts in this case

Net Credit: $1527
Days to Expiration: 43

This is for a $100,000 model portfolio.
For a $20,000 portfolio, some tweaks can be made and play 4/4/2/2 + 2 instead  ($336 credit overall)
For a $10,000 portfolio, it could be 2/2/1/1  + 1 ($168 credit overall)

Profit picture:
(Click on image to enlarge)


An SPX Chart for future reference and self-study:
(Click on image to enlarge) 


Trade Update - Feb 5, 2018

Closed the Call side of the Elephant:
CLOSED 8 SPX 2940/2950 Credit Call spreads 0.15 Debit
Original credit received was 0.95. Net gain of 0.80. $640 in dollar terms for 8 spreads.

CLOSED 9 SPY Long 295 Calls @0.08
Original debit pay was 0.37 per. A 0.29 loss,  $261 in dollar terms.

Net net, $640 - $261 = $379
profit from the Call side of the Elephant. The maximum potential was $427, so this represents 88.7% of the max profit potential on the Call side.
Planing to redeploy it if a rebound takes place.


Trade Update - Feb 5, 2018

Adjusted the Put side:
CLOSED 20 SPX 2615/2625 Credit Put  spreads 2.04 Debit 
Original credit received was 0.55. Net loss of 1.49. $2980 in dollar terms for 20 spreads.

OPENED 20 SPX 2400/2390 Credit Put  spreads 0.64 Credit ($1280)


Trade Update - Feb 6, 2018

CLOSED 20 SPX 2400/2390 Credit Put  spreads @1.30 DebitOriginal credit received was 0.64.
Net loss of 0.66. $1320 in dollar terms for 20 spreads.

The March Elephant is now entirely closed and this is the final result per component:


  8 SPX 2940/2950 Credit Call spreads  $640
  9 SPY Long 295 Calls $261
20 SPX 2615/2625 Credit Put  spreads $2980
20 SPX 2400/2390 Credit Put  spreads $1320

FINAL TOTAL BALANCE: $3921


Check out 2018 Track Record


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